Manufacturing News

Ford, Changan discuss Indian partnership

Ford Motor Co. and Chongqing Changan Automobile Co. are in talks to expand their partnership in India, said Changan President Zhang Baolin.

The two automakers are considering all types of vehicles to be sold in India, he said.

"We have discussed with Ford to use their network to expand overseas, but haven't come to an agreement yet," Zhang told Bloomberg News during a forum in Shanghai.

Ford and Changan have yet to decide whether the vehicles to be sold in India will be Ford or Changan models, Zhang said.

The negotiations come as General Motors Co. and partner Shanghai Automotive Industry Corp. prepare to sell Chinese-built commercial trucks in India. The two companies announced that venture last December.

India's government estimates annual vehicle sales may double to 3 million by 2015, helped by rising incomes and job creation.

Ford and Changan already have a joint venture - dubbed Changan Ford Mazda Automobile - to produce and sell cars in China. Zhang said the venture is "progressing well" and declined to speak about a change in shareholding for the tie-up.

Ford and Mazda Motor Corp. reportedly plan to dissolve their partnership in China and form separate ventures with Changan.

Ford, the second-largest U.S. automaker, says sales in India more than tripled to 7,925 last month.

The Chongqing-based Changan is China's third largest domestic automaker, with group sales of 1.6 million light vehicles in the first nine months.

In addition to its partnership with Ford and Mazda, Changan has a joint venture with PSA Peugeot Citroen to produce premium cars and commercial vehicles.

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